Shenwan Hongyuan: China's steel consumption structure is shifting towards the manufacturing industry, with three factors driving expectations for improvement in the industry landscape

Shenwan Hongyuan released a research report indicating that China's steel consumption structure will shift towards the manufacturing industry, suggesting attention to the undervalued high-dividend targets such as JIULI Hi-tech in the plate and high-end stainless steel pipe sectors. The report analyzes three factors driving the improvement of the industry landscape: 1) Policy production restrictions and corporate cash flow pressures accelerate supply clearance; 2) The resilience of manufacturing demand supports the prosperity of plates and special steels; 3) Raw material prices are declining, leading to a more reasonable distribution of profits along the industrial chain